Impact Of Employee Participation On Job

Satisfaction, Employee Commitment And Employee

Productivity

Presentation By:Komal Khalid Bhatti

INTRODUCTION

• One of the leading challenges in management has been implementing effective human development strategies to enhance organizational performance and accountability. As a result of the emphasis on performance, researchers in human resource management have stressed effective human resources strategies such as job satisfaction, team empowerment, participative management, and strategic planning.

• The face of traditional Human Resources services in progressive organizations throughout Pakistan is currently undergoing a dramatic change. The focus has moved from managing established traditional HR functions to providing guidance to implementing business strategy.

INTRODUCTION…

• In the last few decades’ government of Pakistan is trying to make the corporate sector feasible for investment and for overall uplift of economy because organizations from different industries are playing a significant role in the economic development of Pakistan e.g. telecommunication, banking and oil & gas sector.

• Despite their economic importance, different organizations suffer from a variety of structural and institutional weaknesses, which have constrained their ability to take full advantage from rapidly advancing process of globalization but professionally and nonprofessionally human resource management is inside in different organizations from different industries.

SIGNIFICANCE OF STUDY

• This study is an attempt to explore the impact of a human resource practice (Employee Participation) on job satisfaction, employee commitment and employee productivity. However, it is a new subject for research in Pakistan.

• Today’s knowledge economy demands investments in human capital of the organization and to create a work environment where employees excel at their jobs but it is strongly perceived that practices like employee participation are intentionally or unintentionally ignored in Pakistan so research is the last solution to find out the truth, cause and solution.

Literature Review

Coch and French (1949) developed the productivity and efficiency rationale, assuming that there is a direct link between employees’ involvement in decision-making and work outcomes such as the increase of job satisfaction and productivity. Participation in decision-making can satisfy employees’ self-actualization needs and, by doing so, increase employees’ motivation and job performance.

Literature Review…

Pfeffer (1994); Wagner (1994); and Verma (1995)

Employee participation is positively related to performance, satisfaction, and productivity of an employee.

Literature Review…

Hellriegel, Slocum & Woodman (1998)

High performing, effective organizations have a culture that encourages employee involvement. Therefore, employees are more willing to get involved in decision-making, goal setting or problem solving activities, which subsequently result in higher employee performance.

Literature Review…

Spector's (1986)

Meta-analysis of 88 studies investigated the relationships of perceived control to other job variables (such as job satisfaction, employee commitment, emotional distress and absenteeism) with autonomy and participation being treated as joint indicators of control.

Hypothesis

• H1: Employee Participation has direct positive effect on Job satisfaction.

• H2: Employee Participation has direct positive effect on Employee Productivity.

• H3: Employee Participation has positive effect on Employee commitment.

Objectives of the Study

• To understand and analyze employee participation, job satisfaction, employee commitment and employee productivity and in Pakistan’s telecommunication, Oil and Gas and Banking sector organizations.

• To expose the scope of association sandwiched between employee participation, job satisfaction, employee commitment and employee productivity in Pakistan’s telecommunication, oil & Gas and Banking sector organizations.

SAMPLE INFORMATION

• Sample

• Respondents

• Instrument

• Response Rate

RESEARCH MODEL AND VARIABLES

Employee Participation

Employee Commitment

Job Satisfaction

Employee Productivity

HYPOTHETICAL RESEARCH MODEL

Employee Participation Job Satisfaction

Employee Commitment

Employee Productivity

+

+

+

RESEARCH FINDINGS

Table 1 Correlation Matrix

 

Standard Deviation Mean EPart JS (X1) OC EP

Employee Participation1.5

3.35 1 0.197* 0.354* 0.433*

Job Satisfaction1.2

3.63 0.197* 1.000 0.045* 0.333*

Employee commitment1.9

3.66 0.354* 0.045* 1.000 0.178*

Employee Productivity2.1

3.74 0.433* 0.333* 0.178* 1.000

Employee Turnover

1.4

2.33 -0.223* -0.281* -0.180* -0.053*

Organizational Performance

1.33.13 0.156* 0.328* 0.139* 0.462*

* Show that Correlation among all of them is Significant on 0.01

REGRESSION RESULTS

E Part= +1 X1+2 X2 + 3 X3

Employee Participation = Intercept + Coefficient (Job Satisfaction) + Coefficient (Employee Commitment) + Coefficient (Employee Productivity)

Table 2 Results of Research Model

Employee participation _

Job Satisfaction **0.366

Employee Commitment ***0.508

Employee Productivity **0.179

R2 0.483

Adjusted R2 0.405

F 16.234

N= 136, *** P < 0.10, ** P < 0.05

Stepwise Regression Analysis Table 3 Results of Research

Model Results of Research Model Results of Research Model

Equation A Equation B Equation C

E part= A + 1 X1+ E part= A + 1 X1+ 2

X2 +

E part= A + 1 X1+ 2 X2 +

3 X3 +

Employee Participation_ _

_

Job Satisfaction **0.488**0.19 **0.36

Employee Commitment _**0.40 ***0.51

Employee Productivity _ _**0.18

R2 0.34 0.46 0.48

Adjusted R2 0.26 0.35 0.41

F 18.4617.73

16.23

N= 136, *** P < 0.10, ** P < 0.05

DISCUSSION OF FINDINGS

• The results of this study provide relatively strong support for the existence of a positive relationship among employee participation, Job satisfaction, employee productivity and employee commitment.

• The data in Table 1 is giving the confirmation of the association sandwiched between the employees Participation, Job satisfaction, employee productivity and employee commitment in Pakistan. The variables prove a positive relationship with each other.

CONTRIBUTION OF THE CURRENT STUDY

• This study adds to researcher’s efforts to understand the relationship among employee participation, Job satisfaction, employee productivity and employee commitment in Oil & Gas, Banking and Telecommunication sector.

• The study contributed new directions in the research of management by opening up a debate on the importance of employee participation in job satisfaction. The fact that statistically significant correlations and regression results are indicating that employee participation has a significant impact on all the dependent variables Job satisfaction, employee productivity, employee commitment.

IMPLICATION FOR MANAGEMENT

• Most of the Pakistani organizations do not see employee participation as a driver of better employee performance; our research is indicating that this is one of the foremost contributing variables towards job satisfaction.

• Changes in organizational variables, such as pay scales, employee input in policy development, and work environment could then be made in an effort to increase organizational commitment.

LIMITATIONS OF THE STUDY

• This sample size is not sufficient enough to reflect the factual image of the organizations functioning in Pakistan in context with measuring the relationship among employee participation, Job satisfaction, employee productivity and employee commitment in Pakistan.

• The data, which was obtained from the organizations, was in the shape of perceptual measures of employee participation, Job satisfaction, employee productivity, employee commitment.

• The method used by us in order to collect the data is very common as we have used the Questionnaire method for this research study. Other methods could have been used for this research study like group discussions/discussion forum etc.

DIRECTIONS FOR FUTURE RESEARCH

• Longitudinal studies to establish the causal relationship between the variables.

• To enhance external validity, future research efforts should

obtain a representative sample from more organizations. • Future research should seek additional performance outcomes

at the job level from larger samples with increased statistical power

Thank you for your Patience

Suggestions are appreciated